Answer: I[}75:^Rt
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A: long-run growth rate x>}B#
3*(1+10%) =3.3 million d)N^PJ/
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B: target payout ratio O`cdQu
Target payout ratio=3/15=20% \ jECSV|
Dividend of 2008=18*2%=3.6 million ZAMeq
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C: residual dividend approach Ve)ClH/DW
Retained earnings=total new investment*(1-debt ratio) ~|h lE z
=12*(1-40%) w#oGX
=7.2 million G 0hYFc u
Residual dividend=18-7.2=10.8 million +}P%HH]E/p
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) KacR?Al
Regular dividend=3*(1+10%) =3.3 million !{;[xXK4M
Extra dividend=residual dividend –regular dividend _}D%iJg#
=10.8-3.3 bG"HD?A_
=7.5 million ^
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2. N Company manufactures a kind of product used throughout the machinery industry. The standard price of the materials for the products is $6 per kilogram; the standard quantity of materials allowed per unit is 1.5 kilograms. During July, 2,000 units of the products were finished, for which 3,200 kilograms of materials were used at a total direct material cost of $18.560. uS~#4;R
A. Calculate the direct material price variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. ny)]GvxI
B. Calculate the direct material quantity variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. C\7u<2c
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). 9z:K1
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Answer: 3?Lgtkb8
Notes: S.{fDcM
Actual price=18560/3200=$5.8/unit X/l;s
Actual quantity materials per unit=3200/2000=1.6 kg/unit ;+sl7qlA4
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1).Standard quantity * standard price=standard total cost ;J]25j]]
(1.5*2000) * 6 =$18000 KF_ ?'X0=
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials WSRy%#
(3200-3000) * 6 =$1200 Wbe0ZnM]
3)Actual quantity * (actual price- standard price)= Price variance of direct materials k'Gw!p}
3200 * (5.8 – 6) =$640 n@hl2M6.x9
4)actual quantity *actual price =actual total cost um7o !yg,
3200 * 5.8 =$18560 pE2QnNr'
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A:Price variance of direct materials=(actual price-standard price)*actual quantity Y6A;AmM8
= (5.8-6)*3200 `z9J`r=I
= $640 【F】 9t?L\
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. Pe}PH
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B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price m[spn@SF
= (3200-3000)*6 }k7_'p&yk
=$1200 【U】 >"%ob,c:#
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Efficiency variance of $1200 【U】 due to the higher quantity of materials per unit of 1.6 kg/unit than the standard level of 1.5 kg/unit. Z,
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C:Total variance of direct materials=actual costs- standard cost X P;Bhz3j
=18560-18000 v`x|]-/M&
=560 【U】